A newly launched cryptocurrency on Solana {{SOL}} called Restore the Republic, or RTR, which was rumored to be the official token of Donald Trump, ballooned to $155 million market value before cratering 95% on Thursday after the former president's son warned that his father doesn't yet have an official token.
Hopes for Donald Trump's crypto aspirations were kindled earlier this week when Eric Trump, his son, tweeted that he has "fallen in love with Crypto / DeFi. Stay tuned for a big announcement." Then on Thursday, Restore the Republic began trading, soaring to a $155 million market capitalization just hours after launch.
Ryan Fournier, conservative activist and chair of Students for Trump, amplified the hearsay, saying that "rumor has it that the official trump coin is out...called Restore the Republic." That post on X has since been deleted.
Subsequently, Eric Trump popped the bubble and chaos ensued. He warned users of "fake tokens" and said that the "only official Trump project has not been announced." The post sent RTR spiraling. It fell 95% from its peak price.
Friends: Beware of fake tokens! The only official Trump project has NOT been announced! You will hear it here first. https://t.co/33wfKyaMVB
— Eric Trump (@EricTrump) August 8, 2024
"I was told by sources that Don Jr. would be backing this token," Fournier posted on X on Thursday. "That is why I said rumor. I'm not a big crypto guy and I was not in any way involved in this project."
Crypto observers also pointed to evidence that Kanpai Labs, the entity behind the Kanpai Pandas non-fungible tokens (NFT), boosted the token with advertisements prior to the launch.
Bags, the pseudonymous creator of Kanpai, said the Trump family picked the launch date then "hard rugged us." That post was deleted soon after.
Blockchain data shows that early investors, or insiders, made $4 million of profits in six hours on the token's rise and fall, onchain sleuth Lookonchain found. Five crypto wallets bought 105 million of RTR with $882,000 worth of SOL, then sold 95 million tokens for $5 million in SOL.
The debacle underscores the wild west nature of the burgeoning memecoin market, where grifts and rug pulls abound. Recently, another Trump-themed token DJT was in the spotlight as Martin Shkreli claimed that he and Donald Trump's son Barron created the token. DJT tanked 90% last week as a large token holder appeared to sell en masse.
The episode also highlights Donald Trump's sway among crypto enthusiasts. Analytics firm LunarCrush said that there are currently 162 Trump or MAGA (the shortened version of Trump's famous campaign slogan: Make America Great Again) crypto tokens, up from 111 two weeks ago.
UPDATE (Aug. 8, 2024, 21:28 UTC): Adds blockchain data on early investors’ profits.